FIRST DERIVATIVES, the Newry based financial software and consulting specialists, has bought an American technology marketing firm in a cash and shares deal which could be worth more than £11 million (€13.87 million).

The Northern Ireland company has agreed to pay an initial cash sum of £2.5 million for Market Resource Partners (MRP), the headquarters of which is in Philadelphia.

First Derivatives will also issue 436,644 new ordinary shares, valued at £800,000, under the terms of the deal. The Newry firm said the initial cash consideration will be financed from its "existing bank facilities". An additional deferred payment of up to £7.9 million will also be made by First Derivatives to MRP if it achieves certain profit goals by August 2010.

The American firm, which was founded in 2002, employs 95 people and reported earnings before interest, taxes, depreciation and amortisation of £369,000 in the six months to June 2008. MRP develops and executes marketing and sales programmes for software and technology service firms.

First Derivatives has been in business since 1996. It was set up by its chief executive and largest shareholder Brian Conlon.

Its last published accounts for the year ending February 2008 report a pretax profit of £4.7 million on a turnover of £12.7 million.

The Alternative Investment Market-listed (Aim) Northern Ireland company is due to publish its next interim results in October.First Derivatives specialises in providing software products and services to top tier banks, hedge funds and large financial institutions.

The troubled US financial giant Lehman Brothers and Merrill Lynch were among their client base.

The Newry company employs 140 and operates in several locations worldwide.

First Derivatives floated on London's Aim in 2002. A surge in shareholders from the Republic led the company to seek a listing on the Irish Stock Exchange in 2007. Mr Conlon said the acquisition of the American firm represented yet another milestone for the Newry company.

"The acquisition will provide a springboard for First Derivatives to consolidate and expand its presence in North America and allows us to replicate our successful nearshore services model.

"With ready access to MRP's sales and marketing expertise the acquisition accelerates our channel to market into the US . . . MRP is one of the leaders in its field," Mr Conlon said.